Major terms of the joint venture for Feni and West Chattak are Niko will pay 100% of the costs to earn 80% with a sliding scale to 58% subject to a 300% capital cost recovery.
In East Chattak, Niko will earn 75% with a sliding scale to 50% subject to a 300% capital cost recovery.
The project is subject to a 4% income tax rate that is also subject to capital cost recovery. Gas is currently selling at $2.25 to $2.50 US per mcf and the country is experiencing a shortfall in gas supply.
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